05.09.202506:36:42UTC+00More Evidence of Labor Market Cooling Anticipated in US

In August 2025, US nonfarm payrolls are anticipated to increase by 75,000, closely aligning with July's growth of 73,000, highlighting indications of a cooling labor market. Employers continue to exercise caution in hiring due to ongoing uncertainties surrounding tariffs, trade, and immigration policies. The manufacturing sector is expected to shed 5,000 jobs, influenced by a strike at Boeing, while federal employment is projected to decline as a result of spending cuts initiated by the White House. Economists suggest that the US must add between 50,000 and 75,000 jobs monthly to keep up with the growth of the working-age population. Concurrently, the unemployment rate is predicted to increase slightly to 4.3%, marking its highest level since 2021, up from 4.2%. Average hourly earnings are anticipated to climb by 0.3% month-over-month, consistent with July's growth rate, although the annual rate is expected to decrease to 3.7% from 3.9%.